Committee publication · Correspondence · 4 February 2026
Correspondence with the Permanent Secretary, following up his evidence session on the Annual Report and Accounts 2024-25
Summary
The Work and Pensions Committee Chair writes to the DWP Permanent Secretary following his evidence session on 21 January 2026 regarding the 2024-25 Annual Report and Accounts. The letter raises serious concerns about DWP's organisational culture, arguing that change is too slow and the Department fails to prioritise vulnerable people's needs. Key issues include the handling of carers allowance overpayments, delays in implementing PHSO recommendations, inadequate safeguarding measures, fraud and error targets, PIP service improvements, and workforce morale.
Key findings
- Sayce Review (November 2025) found 86,900 carers with outstanding overpayment debts caused by systemic DWP issues, not individual carers' errors; DWP guidance on averaging earnings and allowable expenses was flawed.
- Committee criticises DWP for apologising only for averaging earnings errors while refusing to acknowledge allowable expenses guidance was flawed, contradicting the Sayce Review's findings.
- PHSO expressed 'serious concerns' about DWP's delayed implementation of actions and poor communication during Women's State Pension Age investigation follow-up; work on action plan was paused despite Government's December 2024 acceptance of maladministration findings.
- DWP's safeguarding training (levels 1 and 3) introduced but not made mandatory; Committee demands mandatory training for all staff to demonstrate genuine cultural change.
- PIP case management system trials showed improved outcomes but rollout not planned until 2029, covering only 20% of cases; Committee calls for faster interim solutions to rebuild claimant trust.
- Survey data shows 20% of DWP staff claiming in-work benefits and 14% using food banks amid ongoing pay dispute with PCS union over 2025-26 offer; Committee expresses concern about workforce morale and service delivery.
Tone
CriticalTopics
Key actors
Sir Peter Schofield, Debbie Abrahams MP, Catherine Vaughan, Barbara Bennett, Liz Sayce OBE, Parliamentary and Health Services Ombudsman, PCS union, Work and Pensions Committee
Notable line
“… the Department is failing to put the needs of vulnerable people first, that it is unwilling to learn from its mistakes and that it shows a lack of urgency to bring about change.”
Key Quotes
“Whilst the Committee recognises that there has been some constructive change to the culture in your Department, we believe that this is incremental and too slow.”
“DWP has failed to demonstrate the ministerial and senior focus needed to resolve these persistent injustices and reform CA to implement its core purposes in the modern world ." 2 It also concluded …”
“I'm afraid this indicates that a member of your senior team doesn't accept the findings of the Sayce Review (although the Government has), which raises questions about the senior team as a whole under your leadership.”
“… a forecast is not a target, it is a forecast. I would have liked to hear more ambition and urgency, ideally aiming for an unqualified audit opinion.”
“This is too slow. You explained that there is a limit to how much you can change under the existing contracts. That is not good enough and, if that is the case, then you will need to find a better solution that will help rebuild trust among PIP claimants now, not in three years' time .”
“The best way to protect your reputation and to build trust would be to demonstrate an improved culture through your actions.”
Source · parliament.uk record ↗